What Administering an Estate Involves
The administration of an estate incorporates a blend of legal acumen and administrative tasks. Confronted with potential challenges or claims on the estate or even navigating the estate’s winding-up process without a Will— known as intestacy— an executor is required to be well-organised and meticulous in accounting records. At Wallace Quinn we have a specialised team who can serve as an assisting hand amid the executry process which can reduce much of the administrative burden for the nominated executor.
Getting the Confirmation
Before starting the estate management, an executor requires the ‘Confirmation’ (probate), granted by the sheriff court. This serves as the executor’s permit to manage the deceased’s money, property and other assets. To get the Confirmation, there are several tasks involved, like submitting paperwork to the court and understanding tax-related matters.
Why Obtaining a Confirmation Matters
Banks or insurance firms will typically ask for the Confirmation before an executor can start their work. Our solicitors can guide you through this application process and do the court application on your behalf.
Main Duties and Responsibilities of an Executor in Scotland
- Locating and valuing the deceased’s assets: The executor must locate and value all of the deceased’s assets, including property, investments, and debts.
- Settling debts and taxes: The executor must pay off any debts and taxes owed by the deceased, using money from the estate.
- Distributing the estate: The executor must distribute the estate according to the deceased’s wishes or, in the absence of a Will, in accordance with Scottish law.
- Update the Will or the intestacy laws: If there is a change in the deceased’s wishes or circumstances, the executor must update the Will or the intestacy laws.
- Communicate with beneficiaries: The executor must keep the beneficiaries informed about the progress of the estate administration and communicate with them as necessary.
- Completing the estate accounts: The executor must prepare detailed accounts of the estate’s income and expenditure and ensure that these accounts are accurate and complete.
- Filing tax returns: The executor must file tax returns on behalf of the estate, and pay any taxes owed.
Possible Hurdles and Disputes
As an executor, you might face challenges and disputes, such as:
- Contesting the Will: Beneficiaries may challenge the Will on grounds such as lack of capacity, undue influence, or fraud.
- Inheritance tax disputes: There may be disputes about the amount of inheritance tax owed, or how the tax should be paid.
- Debt disputes: There may be disputes about the amount of debt owed, or how the debt should be paid.
- Property disputes: There may be disputes about the ownership or management of property owned by the deceased.
How to Manage the Role of an Executor in Scotland
- Seek professional advice: Consult with a solicitor or tax advisor to ensure that you are taking the right steps and minimising your risks.
- Keep accurate records: Keep detailed records of all transactions and accounts, including receipts, invoices, and bank statements.
- Communicate with beneficiaries: Keep the beneficiaries informed about the progress of the estate administration and communicate with them as necessary.
- Be proactive: Take proactive steps to address any challenges or disputes that may arise, using alternative dispute resolution methods where possible.
By understanding these key duties and responsibilities, and seeking professional advice, you can manage the executor role efficiently and ensure the estate’s distribution aligns with the deceased’s wishes. Remember, open communication and transparency are crucial through this process.
If you would like to find out more about the role of an executor in Scotland, have questions or need to act on behalf of a relative or loved one, you can contact us today!
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